Outbound Vs. Inbound: Where Should You Invest Your Marketing Dollars?

The average consumer in today's world is awash in advertising messages directed squarely at them. In fact, Forbes.com estimates that the average consumer sees a total of between 4,000-10,000 advertisements per day! These ads come in all forms from traditional television and radio advertising to an advertisement that is inserted onto a bus, park bench, smartphone game, etc. Given this bombardment of information, human beings have become very adept at screening out relevant information from the rest that they would prefer to ignore. Thus, it is a marketing professional's job to determine the best way to reach people who might otherwise breeze right past their marketing outreach.

When considering your marketing mix and how to increase awareness about your products or services, it is worth considering outbound versus inbound marketing to determine which style is the best use of your advertising dollars.

Inbound Marketing: Strengthening A Connection

The strategy behind inbound marketing is to have potential customers become aware of your product or service through some form of content marketing. Once customers are aware of what you offer, they will often visit your website, blog or other informational outlet to learn more as part of their consideration process. Marketo.com brandishes this definition of what inbound marketing is:

Inbound marketing is a strategy that utilizes many forms of pull marketing—content marketing, blogs, events, search engine optimization (SEO), social media, and more—to create brand awareness and attract new business. Whereas outbound marketing seeks out customers, inbound marketing focuses on visibility, so potential buyers come to you. Instead of "renting attention," companies employing inbound marketing focus on new methods geared toward building awareness, developing relationships, and generating leads.

One might reasonably view this as an elegant way to generate organic business and promote the brand to genuine customers who are interested in doing continued business with the brand over time. It is the method of marketing most likely to engender feelings of loyalty and respect from consumers because the process is less transactional in nature. There are other benefits to inbound marketing as well such as:

Advantages

No Expiration Date - Inbound marketing campaigns are built to last. The websites, social media content, and everything else created for the inbound marketing campaign is designed to continue to attract new customers indefinitely. There is an initial setup period for this type of campaign, but once it is launched into the world, it will remain as long as results continue.

Builds Brand Trust/Loyalty - A certain flow of communication tends to be established between marketer and consumer with inbound marketing campaigns. They are often designed specifically to build a level of trust between the two parties. Solving problems for consumers and being available to answer their questions or provide new informational content are highly rewarding ways to win new business.

Can Be Operated From One Platform - Programs exist now that make it easy to combine all aspects of an inbound marketing campaign onto one platform. From social media to traditional e-mail campaigns, everything can be managed in one easy-to-use overhead platform that marketers will appreciate for its simplicity.

While these are all major advantages of inbound marketing, there are other considerations to this strategy as well. As with anything in marketing, there is always a give and take. So, what are some of the drawbacks to inbound marketing?

Disadvantages

You Are In It For The Long Haul - There is generally not a quick hit of revenue or immediate results from inbound marketing. Rather, this is a process that takes time to build up. Those looking to pump their sales numbers for an earnings report or some other metric they are trying to reach would probably be better off looking at other strategies.

It Is Hard To Establish A Connection In The Beginning - As great as it is to have the trust of your customers, it is not something that happens automatically. Many consumers are wary of new companies and their ability to deliver what they promise.

Inbound marketing is ideal in a number of situations, but it is not appropriate for every situation. With that in mind, we turn to outbound marketing and its potential for your company.

Outbound Marketing: Making The Pitch

When the average person thinks about marketing or advertising, they are likely thinking about an outbound marketing approach. This is the more common approach in our economy, and it is the one that makes the most sense for many advertisers looking to generate more traffic and sales right away. Once again, a textbook definition can prove helpful. This time, it comes from toolbox.com:

Outbound marketing consists of various marketing strategies and techniques that simultaneously target a large spectrum of people. Some of these include advertising (traditional and digital), cold emailing, cold calling, trade shows, and content syndication.

Getting your message out to as many people as possible as quickly as possible is the essence of outbound marketing. The upsides to this style are numerous including:

Advantages

Your Message Can Quickly Be Everywhere Your Customers Are - Outbound marketing thrives on the notion that getting a message out as broadly as possible is the best way to attract new customers to your brand. By using traditional methods of advertising such as television ads, you will certainly reach a broad spectrum of people.

Better Targeting - Paid advertising platforms can make it easier to target customers within your specific niche.

This approach is quicker to start and can reach a broader audience. Sounds great doesn't it? Maybe so, but there are also drawbacks to outbound marketing as well.

Disadvantages

A Less Personalized Touch - Consumers know that they are being pitched to in a way that is far from unique. If you’re not careful, they can feel like your ads are interrupting their day and develop a negative impression.

It Might Hit The Wrong Audience - Pushing a message far and wide gets it in front of a lot of people, but they may not be the right people. Target audiences matter a great deal in marketing, and missing your target demographic can prove incredibly costly.

As with inbound marketing, there are pluses and minuses to outbound marketing as well. With that in mind, the question has to be asked: which is the best use of your marketing dollars?

Optimizing Your Marketing Dollars

After considering the advantages and disadvantages of each approach, what is the best way to spread your marketing dollars across these strategies. This decision can depend on your budget, where your target customers consume their content. Typically, the best thing to do is combine some of both if possible. However, if your marketing budget is incredibly limited, you should probably begin with outbound marketing. It is less expensive and will result in quicker results. You might need those instant results to sustain your cash flow in the short-run. As the business grows and it becomes more established in its operations, then it can become prudent to also invest in inbound marketing campaigns.